For years people have considered gold ,and it’s grandson silver to be a pointless financial investment… Indeed, why invest in inert metals that have no income?? The point is that if someone advises you not to buy something, it seems relevant to be interested in it… In the same way that if you hear your neighbour, a cousin who knows nothing about finance, or worse, your banker advise you to invest in gold, you sould step back from this investment… we’ll come back to this later…

So, rather GOLD or SILVER?

Very good question. Gold and Silver both have high potential for the next 5 years. The gold/siver ratio allows us to calculate how much silver you can buy with gold and vice versa. Historically, a ratio of approximately 16 is logical. Firstly because this ratio has been seen this last decade, and secondly, there is 16 times more silver than gold on our good old earth…

In 2007, the ratio was at 52. Gold was 52 times more expensive than silver. At that time, the price of gold was of 650$ and silver was of 12.5$. In October 2010, the ratio was at 56. In those 3 years, these two metals simply doubled, so the ratio stayed relatively stable. In October 2010, to obtain a ratio of 16, Silver should be worth 85$…

On another point, GOLD and SILVER are closely tied to the rise and decline. Silver follows the tendency ( it declines more where gold declines but rises more when gold rises).

On another aspect, it seems SILVER is contained in a yolk of currencies. Banks better not see prices take off, because most of them are “short” on silver. FIY, for the year 2009, banks sold 45 times the annual production of silver in 2009. Unbelievable, isn’t it? Financiers are also tremendous magicians…

If the people who bought these financial products physically claimed their silver there would be a real boom in silver prices. Banks would have to buy their short position to prevent a huge money loss. Remember the volkswagen case when the shares went up 200% in a few hours as a result of massive buybacks from the traders who’d “shorted” the share? Well it’s the same thing except that the rise of silver is lasting!

In short, if you believe in the rise of Gold, buy Silver, your wallet can only get better! If you’re not convinced, check out the rest of this site…